Ethereum (ETHUSD) Island Reversal Forming in Weekly Chart

Ethereum (ETHUSD) is forming its 1st red weekly candle in 6 weeks as profittaking kicks in after ETHUSD briefly tested the psychologically key 400 whole figure resistance level. With the current red weekly candle quickly lengthening reversing most gains over the last 2 weeks, a bearish Island Reversal is forming. Significantly, ETHUSD is arguably breaking upchannel support (on the weekly and daily chart). The daily chart provides a clearer set of warnings for bulls with the RSI, Stochastics and MACD decisively sliding lower. Nevertheless, with the weekly MACD red line still flattish and yet to turn down, bears may soon lock in profits and trigger a short-covering rally at some point in the next day or so.  Any bounce will be short-lived with longer term bears having gotten the upper hand with today"s weekly/daily chart upchannel support break.

 

Bitcoin (BTCUSD) is forming its 1st red weekly candle in 6 weeks as profittaking kicks in after BTCUSD briefly tested the psychologically key 5000 whole figure resistance level. While the red weekly candle is still just beginning to form, and far from being bearish just yet (given its small body so far), the technicals on BTCUSD can rapidly change within a day given its volatility. Although the daily chart is appearing bearish with the RSI, Stochastics and MACD tiring, the weekly MACD continues sloping up suggesting there may be a bit more upside in the next day or so before the bulls throw in the towel and bears become more aggressive. Significantly, BTCUSD is testing upchannel support (on the weekly and daily chart), and has a high likelihood of breaking upchannel support based on Ethereum (ETHUSD)"s break today of a similar upchannel support on its weekly/daily chart.

Click here for today"s technical analysis on USDJPY

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and cryptocurrency markets can be analyzed to enhance trading performance. Tradable Patterns’ daily newsletter provides technical analysis on a subset of three CME/ICE/Eurex futures (commodities, equity indices, and interest rates), spot FX and cryptocurrency markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

Bitcoin (BTCUSD) Breaks Below 4000, Testing Month Plus Upchannel Support

Bitcoin (BTCUSD) appears to be ending its month long rally from just below the 2k level, as it threatens to break an upchannel support (on the weekly and daily charts). Significantly, BTCUSD is forming a red weekly candle with its trading range thus far below last week"s Doji body. If BTCUSD breaches the weekly/daily chart upchannel support today, the current weekly red candle will likely continue lengthening potentially forming an Island Reversal pattern consisting of the last 2 weekly candles (and the current). Significantly, the all-time peak last week coincides with the 2.618 Fib extension that could have been drawn based on the May to July sideways channel low and high. With the daily RSI and Stochastics turning down from overbought levels, and the daily MACD negatively crossing, a decent chance exists for the daily/weekly chart upchannel support to be breached today. An upchannel support break would accelerate profittaking resulting in the weekly MACD blue line quickly flattening and turning down perhaps by late week.

Click here for today"s technical analysis on Raw Sugar, Cocoa

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and cryptocurrency markets can be analyzed to enhance trading performance. Tradable Patterns’ daily newsletter provides technical analysis on a subset of three CME/ICE/Eurex futures (commodities, equity indices, and interest rates), spot FX and cryptocurrency markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.